Business
Rocky Mountain Dealerships Inc. announces second quarter results
Continued Sales growth in the second quarter CALGARY, Aug. 13, 2012 /CNW/ - Rocky Mou...
About this update from Roland Mineral Enterprises Corp.
[{"type":"text","content":"\n\n\n\n\n\nContinued Sales growth in the second quarter\n\n\nCALGARY, Aug. 13, 2012 /CNW/ - Rocky Mountain Dealerships Inc. (TSX:RME, hereinafter \"Rocky\") today reported financial results for the three\n and six months ended June 30, 2012.\n\n\nHIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2012:\n\n\nIncreased revenues by 8.8% to $225.7 million.\n\n\nGross profit increased to $34.2 million (15.2% of sales) from $31.1\n million (15.0% of sales).\n\n\nNormalized Diluted Earnings per Share(1) of $0.26, as compared to $0.30 in 2011.\n\n\nGenerated Cash Flow from Net Earnings(1) of $4.8 million.\n\n\nIncreased annual dividend by 50% to $0.27 per common share.\n\n\nRepurchased all 7% convertible unsecured subordinated debentures.\n\n\nEntered into an agreement to purchase Camrose Farm Equipment Ltd.\n\n\n\n\n\nHIGHLIGHTS FOR THE SIX MONTHS ENDED JUNE 30, 2012:\n\n\nIncreased revenues by 16.9% to $417.8 million.\n\n\nGross profit increased to $61.9 million (14.8% of sales) from $54.9\n million (15.4% of sales).\n\n\nNormalized Diluted Earnings per Share(1) of $0.38, as compared to $0.43 in 2011.\n\n\nGenerated Cash Flow from Net Earnings(1) of $7.1 million.\n\n\n(1) See further discussion in \"Non-IFRS Measures\" and \"Reconciliation of\n Non-IFRS Measures to IFRS\" sections below.\n\nMatt Campbell, CEO of Rocky, noted \"The second quarter saw our revenues\n and gross profits grow.  Initiatives we announced in previous quarters,\n such as the repurchase of our debentures, our system-wide rebranding\n efforts and initiatives to monitor and improve our used inventory\n profile, impacted our net profitability as expected.  We are confident\n in our long term gross margin targets.\n\n\n\"SG&A as a percentage of revenue increased in the six months ended June\n 30, 2012 due to our previously announced system-wide rebranding effort\n and organizational development costs.  Our initiatives of having a\n strong market and brand position, increasing our operating efficiencies\n and enhancing the relationships we have with our customers are moving\n as planned and will yield results for many years to come.\n\n\n\"During the quarter, we also took up and paid for all of our 7.00%\n convertible unsecured subordinated debentures for total consideration\n of $37.8 million.\n\n\n\"Subsequent to the quarter end, we acquired 100% of the ...